Articulating a model to enhance the effect of e-HRM on sustainable competitive advantage

Abstract

Purpose: This paper articulates a model that maximizes the use of e-HRM to achieve sustainable competitive advantage. It examines the indirect effects of e-HRM use on sustainable competitive advantage, through job satisfaction, employee performance, and perceived organizational politics. Design/methodology/approach: A survey approach was used to collect data from 30 organizations. A purposive sampling technique was used to select the study sample. The SPSS PROCESS Macro for running mediation analysis was used to analyze data. Findings: The findings show the indirect effect of e-HRM on sustainable competitive advantage through job satisfaction, employee performance, and perceived organizational politics. Job satisfaction has the biggest effect on achieving strategic outcomes. For organizational excellence, e-HRM use should complement other HRM practices. Practical implications: Management should pay attention to employee outcomes during the implementation of e-HRM. This study broadens the scope of the interaction between e-HRM use and sustainable competitive advantage. This study was conducted in a developing economy and demonstrated that the effects of e-HRM use on sustainable competitive advantage are not limited to developed economies. Originality/value: This study is one of the pioneering efforts to develop a model that maximizes organizational outcomes in developing countries. In addition, this study contributes to the understanding of intervening variables necessary to enhance information technology’s potential within the HR function.